Accounting and Financial Reporting Guidelines for Small and Medium-sized Enterprises (SMEGA) – Level 3 guidance

After a brief introduction of the agenda item, the Chair of the session invited a representative of the IASB to provide delegates with an update on the accounting standard for SMEs (IFRS for SMEs) that the IASB had been developing. The IASB representative presented a comprehensive update on the status of this IASB project and also discussed remaining steps. In comparison to the ISAR approach to accounting by SMEs, the IFRS for SMEs was aimed at Level 2 enterprises. Following the exposure draft and field-testing of the IFRS for SMEs, the IASB was in the process of redeliberating the standard. Some of these issues pertained to (a) making the standard fully stand-alone; (b) naming the standard; (c) anticipating changes to the full IFRS; (d) deciding whether historical cost should be the default basis of measurement; (e) fair value; (f) consolidation; (g) amortization of goodwill; (h) impairment; (i) income taxes; (j) operating leases; (k) pensions; (l) share-based payment; and (m) debt equity classification and further simplifications on disclosure requirements.

Sustainable Development Goals:

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions